It is worth noting Tether has not released an official statement on the matter at this time.
Bitfinex and Tether have been embroiled in a dispute with the New York Attorney General’s office (NYAG) of the alleged commingling of funds. NYAG accused the firm of participating in a cover-up in a desperate attempt to mask the loss of approximately $850 million in corporate and client funds. The firm never revealed the loss to its clients, the lawsuit states.
An investigation launched in 2018 by the AG also found out that the company has never released a public audit proving it has the reserves to back the coins in circulations.
Also, in May last year, the US Department of Justice opened criminal investigations on digital money manipulation. The department later released a 66-page report which revealed how rogue individuals used Tether to manipulate BTC prices on Bitfinex and to a lesser extent the Bittrex and Poloniex exchanges.
source: https://coindoo.com/tether-to-issue-a-chinese-yuan-pegged-stablecoin/
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